Compliance to Environmental Regulations: The Indian Context

Abstract

Theoretical exposition of the trade-environment linkage (in the form of Environment Kuznets Curve) has been extensive. While one set of studies show that with the increase in per capita income environmental degradation would decline, the other set of studies has shown that no such trend exists for developing countries. Though environmental laws are in place, firms display a very low level of compliance in developing countries. This article brings out the low level of compliance to environmental regulations in India while trying to identify the main causes.